Suppose that John Maestro, the owner of a tennis shop in Evanston, Illinois, decides to purchase a new machine that restrings tennis rackets in half the time it formerly took. The new technology costs $1,000 . and the MPC is 0.80 . How much real GDP will be generated from John's $1,000 initial investment?
a. $200
b. $500
c. $1,000
d. $2,000
e. $5,000
e
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Empirical observations on actual North-South trade patterns tend to
A) support the validity of the Heckscher-Ohlin model. B) support the validity of the Leontief Paradox. C) support the validity of the Rybczynski Theorem. D) support the validity of the wage equalization theorem. E) support the validity of the neo-imperialism exploitation theory.
The interest rate charged on a Eurodollar loan will be:
a. higher than the interest rate charged on a U.S. loan. b. lower than the interest rate charged on a U.S. deposit. c. essentially equal to the interest rate charged on a Eurodollar deposit. d. lower than the London interbank offer rate. e. lower than the interest rate charged on a U.S. loan.
Exhibit 5-9 Supply and Demand Curves for Good X
?
As shown in Exhibit 5-9, the price elasticity of demand for good X between points E and B is:
A. 3/7 = 0.43. B. 7/3 = 2.33. C. 1/2 = 0.50. D. 1.
A leftward shift of a product supply curve might be caused by:
A. some firms leaving an industry. B. an increase in consumer incomes. C. an improvement in the relevant technique of production. D. a decline in the prices of needed inputs.